CAIT warns government against changing, delaying new FDI norms

By

Maverick Martins

Published
Jan 17, 2019

Confederation of All India Traders (CAIT) has threatened to launch a nationwide protest if the government gives in to the demands of the e-commerce companies to delay or change the foreign direct investment (FDI) norms.
 

The new FDI and e-commerce norms will come into effect from February 1, 2019, which will prohibit e-commerce companies from selling products in which they have a stake and also put an end to exclusive partnerships with brands.
 
The new norms are likely to benefit traders across India who have been demanding an e-commerce policy to regulate the industry as the deep discounting, cash backs and other offers have hit their businesses hard.

CAIT has also demanded a thorough probe in the business activities of e-commerce firms and asked the government to impose restrictions on funding.
 
Praveen Khandelwal, National Secretary General, CAIT, in a statement said, “The e-commerce players are lobbying and deploying pressure tactics in nexus with the US chambers, to amend the revised FDI norms. As a body that represents seven crore small businesses in the country and 40,000 trade federation, we strongly oppose any changes. To accede to their demand is not good for the trading community.”
 
 “We want the government to institute a thorough probe in the business activities of these players in the last 2-3 years. They should be strictly penalised if any violation found. They should also be restricted from receiving any funds,” Khandelwal added.